Universal child benefits, such as unconditional cash payments or tax transfers, are critical in the fight against child poverty, yet are only available in 1 in 10 countries worldwide, according to a new report published by the Overseas Development Institute and UNICEF on Wednesday.
The report Universal Child Benefits: Policy Issues and Options highlights that universal cash benefits provided to children in middle-income countries at a cost of just 1 per cent of GDP would lead to 20 per cent decline in poverty across the entire population, UNICEF said in a press release.
In 15 high-income countries, delivering universal child benefits alone led to a 5 percentage point reduction in child poverty, on average. Universal child benefits are also proven to reduce deprivation, improving children’s overall wellbeing, health, education, food security, productivity and ability to contribute to their societies and economies when they reach adulthood.
“Investing in children not only changes their lives but yields high dividends for their communities and for society as a whole,” said Henrietta Fore, UNICEF Executive Director. “Now more than ever, as the economic fallout of COVID-19 threatens to roll back years of progress in reducing poverty, universal child benefits can be a lifeline. They can protect vulnerable families from deepening levels of poverty and deprivation, and can save countries from catastrophic societal and economic impacts.”
Universalizing benefits reduces risks often associated with narrow means testing whereby some families in need are left without financial support, including due to exclusion errors. Universalizing social protection programmes such as cash or tax transfers also helps to remove stigma associated with benefit schemes overall.
“Universal child benefits play a critical role in reducing poverty while promoting social cohesion and public support for social protection. In countries with established universal child benefits, they constitute a cornerstone of national social policy systems and are effective in scaling up social protection in times of crisis,” says Sara Pantuliano, Chief Executive at ODI.
Francesca Bastagli, lead author of the report and Director of Equity and Social Pol...
